Krispy Kreme Inc. (NASDAQ: DNUT) posted stronger-than-expected third-quarter earnings on Thursday, signaling early success in its ongoing turnaround plan focused on margin expansion, deleveraging, and operational efficiency. Shares climbed more than 5% in intra-day trading following the report.

The doughnut maker reported adjusted earnings of $0.01 per share, ahead of expectations for a $0.06 loss. Revenue totaled $375.3 million, just shy of the $378.68 million forecast but representing organic growth of 0.6% from the prior year.

Adjusted EBITDA rose 17% year over year to $40.6 million, more than doubling from the second quarter of 2025. Margins expanded to 10.8% from 9.1% a year earlier, supported by productivity initiatives, SG&A cost savings, and the elimination of expenses related to its discontinued McDonald's USA partnership.

As part of its turnaround, Krispy Kreme has been refranchising international markets, closing underperforming stores, and focusing on capital efficiency. Global points of access fell 6.1% to 14,851 as the company streamlined its footprint while working to drive sustainable long-term growth.